Vodafone and Three Merger Completes, Creating a New Force in UK Mobile
In a significant development in the UK telecommunications market, Vodafone Group Plc and CK Hutchison Group Telecom Holdings Limited have announced that the merger of Vodafone UK and Three UK has successfully completed on 31 May 2025. The combined business, named VodafoneThree, will be 51% owned by Vodafone and 49% by CK Hutchison Group Telecom Holdings Limited.
According to a statement released by Vodafone, the merger will create a new force in UK mobile, transforming the country’s digital infrastructure and propelling the UK to the forefront of European connectivity. The combined business will invest £11 billion over the next 10 years to create one of Europe’s most advanced 5G networks, giving millions of customers and businesses up and down the country a vastly superior mobile experience.
VodafoneThree will be led by Max Taylor, currently the CEO of Vodafone UK, with Darren Purkis, currently CFO of Three UK, appointed as Chief Financial Officer. The company plans to invest £1.3 billion in capital expenditure in its first year, accelerating its network deployment and delivering cost and capex synergies of £700 million per annum by the fifth year after completion.
The merger is expected to be accretive to Vodafone’s Adjusted free cash flow from FY29 onwards, with Vodafone fully consolidating VodafoneThree in its financial results. The transaction completes the reshaping of Vodafone in Europe, and following this period of transition, Vodafone is now well-positioned for growth ahead.
Margherita Della Valle, Vodafone Group Chief Executive, said: "The merger will create a new force in UK mobile, transform the country’s digital infrastructure and propel the UK to the forefront of European connectivity. We are now eager to kick-off our network build and rapidly bring customers greater coverage and superior network quality. The transaction completes the reshaping of Vodafone in Europe, and following this period of transition we are now well-positioned for growth ahead."
Canning Fok, Deputy Chairman of CK Hutchison and Executive Chairman of CKHGT, said: "As we have demonstrated in other European markets, scale enables the significant investment needed to deliver the world-beating mobile networks our customers expect, and the Vodafone and Three merger provides that scale. In addition, this transaction unlocks significant shareholder value, returning approximately £1.3 billion in net cash to the Group."
The merger is a significant development in the UK telecommunications market, with high-quality network connectivity critical to many elements of daily life, economic growth prospects, and public services. The investment in a 5G Standalone network will propel the UK’s mobile infrastructure to the forefront of European connectivity.
About VodafoneThree’s Plans and Expectations
VodafoneThree plans to invest heavily in its network, with a focus on delivering superior network quality and coverage to customers. The company expects to deliver significant cost and capex synergies, with a target of £700 million per annum by the fifth year after completion.
The company also expects to have a significant impact on the UK’s digital infrastructure, with a focus on transforming the country’s mobile landscape. VodafoneThree will be a major player in the UK telecommunications market, with a strong network and a commitment to delivering high-quality services to customers.
About Vodafone and CK Hutchison Holdings Limited
Vodafone is a leading European and African telecoms company, providing mobile and fixed services to over 340 million customers in 15 countries. The company has a significant presence in the UK, with a long history of delivering high-quality services to customers.
CK Hutchison Holdings Limited is a multinational conglomerate with businesses spanning the globe. The company has a significant presence in the telecommunications sector, with operations in over 50 countries and a commitment to innovation and technology.
The merger between Vodafone and Three is a significant development in the UK telecommunications market, with VodafoneThree set to become a major player in the sector. With a focus on delivering high-quality services and investing in the UK’s digital infrastructure, VodafoneThree is well-positioned for growth and success in the years ahead.
Media Enquiries
For media enquiries, please contact:
Vodafone Group Plc
Media Relations: [email protected]
Investor Relations: [email protected]
CK Hutchison Holdings Limited
[email protected]
Headland Consultancy
- 44 (0) 20 38054822;
Andy Rivett-Carnac:
+44 (0) 7968 997 365
Notes
- Proforma (12-month basis).
Other Notes to Editors
- Expected impact of the merger on Vodafone Group’s FY26 financials (on a proforma full year basis): €0.4 billion incremental Adjusted EBITDAaL and -€0.2 billion dilutive to Adjusted Free Cash Flow.
- Subject to customary closing adjustments, VodafoneThree’s net debt immediately after completion is expected to be £6.0 billion (with Vodafone UK contributing £4.3 billion of debt and Three UK contributing £1.7 billion of debt respectively). As a result, on a fully consolidated basis, Vodafone Group’s net debt will increase by £1.7 billion (€2.0 billion).
- Both parents have agreed to contribute £800 million of equity into VodafoneThree to support the working capital requirements of the business (£408 million from Vodafone and £392 million from CKHGT). £600 million of this funding will be contributed shortly after closing, with the remaining £200 million to follow in Q1 2026.
- There have been no material changes affecting any matter contained in previous announcements relating to this transaction made on 14 June 2023, 30 September 2024 and 9 December 2024.
